Temairazu, Inc. (2477) AI Stock Analysis

• Market Cap: ¥17.91B
• Dividend Yield: 1.21%
• Average Volume (3M): 13.57K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.54
• Revenue Growth: 8.09%
• EPS Growth: 8.53%
• Country: JP
• Employees: 31
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 45.41
• Shares Outstanding: 6,480,961
• 10 Day Avg. Volume: 14,180
• 30 Day Avg. Volume: 13,570
• PEG Ratio: 1.87
• Price to Book (P/B): 2.95
• Price to Sales (P/S): 9.12
• P/FCF Ratio: 18.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 179.1
• Revenue Forecast (FY): ¥2.38B

• Rating: 78 Outperform
• Price Target: ¥3,155.00 ▲(0.32% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial performance (high profitability, debt-free balance sheet, and strong cash conversion). Technical signals are neutral to slightly weak, and valuation appears reasonable but not a clear bargain, which moderates the overall score.

Positive Factors

Debt-free balance sheet

Zero reported debt provides durable financial flexibility: the company can fund capex, product development, and M&A from cash without interest burdens, withstand demand shocks, and preserve investment optionality—supporting stable operations and strategic choices over months to years.

Strong cash conversion

High and persistent operating cash conversion means earnings reliably turn into usable cash, enabling reinvestment, shareholder returns, or buffer reserves. This lowers refinancing risk and supports steady execution of subscription-based growth strategies over the medium term.

High margins & improving revenue

Sustained, very high margins coupled with accelerating revenue indicate a scalable, profitable software model with strong unit economics. Recurring revenue and high margins support durable cash flows and attractive returns on incremental sales over the coming quarters.

Negative Factors

Uneven historical growth & FCF volatility

Variable growth and free cash flow swings complicate forecasting and capacity planning. For a small software vendor, timing-dependent FCF volatility can force short-term tradeoffs in hiring, R&D or sales spend, making execution riskier across 2–6 month horizons.

Limited scale / small headcount

A very small team constrains product development bandwidth, commercial reach, and redundancy. This raises key‑person and execution risks, slows feature rollout against larger competitors, and can limit the pace of expanding sales and support operations over the medium term.

Dependency on OTA/channel integrations

Business reliance on OTA and channel partnerships creates structural vulnerability: changes in partner distribution terms, API access, or competitive behavior can materially affect distribution, pricing power, and customer retention, posing a persistent strategic risk.

Temairazu, Inc. Business Overview & Revenue Model

Company Description

Temairazu, Inc. develops and operates comparison and reservation sites. It operates Channel Manager TEMAIRAZU, a system for accommodating hotels that centrally manage multiple accommodation reservation sites; and hikaku.com, a comparison website. The company was formerly known as Hikaku.com Corporation and changed its name to Temairazu, Inc. in October 2017. Temairazu, Inc. was incorporated in 2003 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Temairazu primarily generates revenue by providing its hospitality software (e.g., reservation/inventory and channel management functionality) to accommodation operators on a recurring-fee basis and/or via usage-based fees tied to system use and distribution connectivity. Key revenue streams typically include (1) subscription or monthly service fees for access to the platform and its modules, (2) implementation/setup fees and optional support/maintenance fees, and (3) fees associated with connectivity to external booking channels (such as OTAs) and related reservation-distribution functions where applicable. The company’s earnings are supported by integrations/relationships with major booking channels and travel-related platforms, which increase the utility of its system for lodging operators and help drive adoption and retention. null

Temairazu, Inc. Financial Statement Overview

Summary

High-quality fundamentals: consistently very strong margins and improving recent revenue growth. The balance sheet is exceptionally conservative with zero debt and steady asset/equity growth, while cash conversion is strong (operating cash flow consistently well above net income). Main risks are uneven historical growth and volatility in free cash flow growth year-to-year.

Income Statement

Temairazu shows consistently strong profitability with very high gross and operating margins across the period, and net margins holding near ~47–49%. Revenue growth is solid and improving in the most recent year (2025 annual: +15.1% vs. 2024: ~+11.9%), supporting a steady upward earnings trajectory. The main watch-out is that growth has been somewhat uneven historically (including a small revenue decline in 2021), though profitability remained resilient.

Balance Sheet

The balance sheet is exceptionally conservative: total debt is zero in every year provided, resulting in no leverage pressure and strong financial flexibility. Equity and total assets have grown steadily over time, and returns on equity remain healthy (roughly mid-teens to ~20% historically), indicating the company is generating solid profit relative to its capital base. A potential limitation is that with no debt, future returns may rely primarily on continued operating performance rather than balance-sheet optimization.

Cash Flow

Cash generation is strong and high-quality: operating cash flow is consistently well above net income (operating cash flow to net income ~2.1–2.5x), and free cash flow closely tracks net income (near ~1.0x), implying profits are converting cleanly into cash. Free cash flow growth is volatile year-to-year (notably a dip in 2024 and an extreme spike in 2025), which suggests variability in working capital/timing effects even though overall cash flow levels remain robust.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.90B	2.19B	2.02B	1.81B	1.63B	1.61B
Gross Profit	1.74B	1.94B	1.82B	1.66B	1.50B	1.49B
EBITDA	1.40B	1.62B	1.48B	1.33B	1.17B	1.15B
Net Income	922.15M	1.07B	976.46M	873.81M	782.58M	758.41M
Balance Sheet
Total Assets	6.53B	7.22B	6.98B	6.18B	5.38B	4.80B
Cash, Cash Equivalents and Short-Term Investments	6.12B	6.59B	6.57B	5.83B	5.05B	4.48B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	382.20M	449.67M	419.83M	397.11M	289.12M	316.63M
Stockholders Equity	6.15B	6.77B	6.56B	5.78B	5.09B	4.48B
Cash Flow
Free Cash Flow	0.00	1.06B	943.24M	960.17M	730.59M	687.77M
Operating Cash Flow	0.00	1.06B	949.47M	964.78M	730.59M	689.67M
Investing Cash Flow	0.00	0.00	-6.24M	-4.47M	1.26M	-1.90M
Financing Cash Flow	0.00	-1.03B	-204.05M	-181.56M	-168.61M	-175.03M

Temairazu, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3145.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2477, the sentiment is Negative. The current price of 3145 is above the 20-day moving average (MA) of 2838.15, above the 50-day MA of 2997.56, and above the 200-day MA of 3065.06, indicating a bearish trend. The MACD of -53.85 indicates Negative momentum. The RSI at 39.10 is Neutral, neither overbought nor oversold. The STOCH value of 56.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2477.

Temairazu, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7047	79 Outperform	¥31.66B	7.68	―	0.11%	31.33%	34.22%
2477	78 Outperform	¥17.91B	16.96	―	1.21%	8.09%	8.53%
3922	77 Outperform	¥28.40B	12.43	―	0.38%	18.02%	46.43%
6054	64 Neutral	¥3.32B	-147.16	―	―	-5.08%	-180.19%
5139	62 Neutral	¥19.63B	26.23	―	―	28.90%	29.06%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
5243	54 Neutral	¥40.08B	58.36	―	―	22.37%	655.34%

Temairazu, Inc. Corporate Events

Temairazu posts higher first-half profit and plans increased dividends

Temairazu, Inc. reported non-consolidated results for the six months ended December 31, 2025, showing net sales of ¥1,178 million, up 10.3% year on year, and operating profit of ¥834 million, up 6.5%, with net income rising 6.5% to ¥546 million. The company maintained a strong financial position with an equity ratio above 93%, though total assets and net assets edged down slightly from June 30, 2025.

Basic earnings per share increased to ¥88.26 from ¥79.20, and the company plans to raise interim and year-end dividends, targeting a total annual dividend of ¥40 per share for the year ending June 30, 2026, up from ¥38 in the prior year. For the full fiscal year, Temairazu forecasts continued, though more moderate, growth with net sales of ¥2,365 million and net income of ¥1,108 million, underscoring stable profitability and a shareholder-return policy supported by steady cash generation.

The most recent analyst rating on (JP:2477) stock is a Buy with a Yen3812.00 price target. To see the full list of analyst forecasts on Temairazu, Inc. stock, see the JP:2477 Stock Forecast page.